California real estate forms and transaction help

[Joe J.]

Hi.  I'm in California and am considering brokering my own deal for either a sfh or a multi-unit house hack that I plan to live in.  I live in a relatively high cost area in southern California and prices  quite high so I am trying to make a little in commissions to help with the affordability here.

I've had a brokers license for quite some time now but have never used it and frankly do not have a lot of transactional experience.  With that being said, is there a good resource where I can get all of the necessary documents (preferably e-document) for a purchase?  I tried doing a quick search on BP but failed to find anything.  I know CAR has some forms you can purchase for non-CAR members but was wondering if there are any other good alternatives.

*Additionally, is it legal/possible to structure a deal with seller/seller agent to discount the agreed upon price in exchange for the seller NOT paying me commission?

For example, if we agree on a purchase price of $1M and a commission of 2.5% for buyer agent (me), could I:

1) Reduce purchase price from $1M to ~ $975,000 (less difference from making seller agent whole)

2) Agree to make seller agent whole (receive $25k gross commission)

I know this is penny pinching but I'd prefer this over a standard deal so that I could lower my property tax rate and also not incur income tax on the commission.

I feel that this wouldn't work as I would most likely have receive some amount of income for my services.  If this is the case, what is the bare minimum?

Appreciate any feedback, thanks!

[Sean Murray]

Hi Joe, All the contracts I use on a day-to-day basis are AIR/AIR CRE contract forms. They are widely used throughout the commercial world, and also have product type specific contracts. You purchase tokens and each set of contracts is worth a certain amount of tokens. Not sure how it works if you are not a member though. If you google AIR CRE I am sure their website has more information.

I have structured a deal in the past where my brokerage team put 2/3 of our commission back into the deal. You notify the escrow officer that you will be crediting a portion of your commission back to the buyer. I like to keep things simple, but how you structure your deal is completely up to you.

Hope this helps.